France's Budget Battle Exposes Growing Debt Crisis

France's government has postponed a crucial budget vote to October 27 as it struggles to pass next year's spending plan amid political opposition and social unrest, testing Prime Minister Sébastien Lecornu's credibility. The government proposes a €54 billion fiscal adjustment by 2027 to reduce the deficit, but faces a weakened center and strengthened political extremes in parliament. Rising French bond yields and a widening gap with German rates have increased borrowing costs. Researcher Gene Frieda of Bruegel warns France risks falling behind European competitors like Germany and Italy due to political polarization. He notes no major party acknowledges current budget benefits are unaffordable, and warns a crisis may be needed to force political consensus.